Mayor uses surplus to get through 'economic super storm'
Vernon. Costs are going up in every area of Vernon's budget, said Mayor Howard Burrell. But he said residents losing jobs during the coronavirus pandemic should not have to face a big tax increase. The town is drawing $1 million from its reserve fund to get through 2020.
Vernon /
| 31 Mar 2020 | 02:11
U.S. Rep. Josh Gottheimer swears in Vernon Mayor Howard Burrell on Jan. 1. (
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Mayor Howard Burrell announced a budget calling for an annual tax increase of $9.73 for the average assessed home in Vernon.
He said the increase is being kept down by drawing from the township's fund balance.
Because of cost increases, the initial budget that he and the council agreed to would have brought tax increases for the average assessed home up to $59 per year, Burrell said. Costs have been going up on line items like vehicles, equipment and supplies for first responders, communications, insurance, workers compensation, and employees' medical care. In addition, Burrell said, there is the Reserve for Uncollected Taxes for revenue the township was unable to collect from the Legends property.
"However, as I pondered the likelihood that the economic impact of actions required by us as a nation to end this coronavirus crisis had already resulted in the loss of millions of jobs, some the jobs of Vernon residents, I decided to use funds from the town’s fund balance," Burrell said in a statement.
He likened the fund balance as a “savings account" or "rainy day fund" reserved for unforeseen emergencies. He said he would use $1 million of the $3.7 million in the fund to keep taxes down.
"This is an absolute appropriate time to use some of the money from this fund balance," Burrell said in a statement. "That belief is based on the economic projection that the negative economic impact of coronavirus related actions has produced, and will continue to produce, not simply economic rain, but also an economic super storm in the lives of our residents."
He gave credit to the former mayor, Harry Shortway, for "an outstanding job of building up what was a very low fund balance."
He also acknowledged the contribution to the town’s department heads, especially by the Town’s Chief Administrative Manager, Chuck Voelker, and the "very financially smart and creative" Chief Financial Officer, Donelle Bright, as well as council members.
"Political leaders at the international, national, state, county, and municipal levels have been forced to start this year off by facing the serious medical, financial and political challenges presented by this world-wide pandemic," Burrell said, "but I believe that this town has the collective group of political leaders to successfully deal with these challenges."
Budget goals:
Maintain the level of services the town is required or committed to provide, while looking for ways to become more effective and efficient.
Continue ongoing Road Improvement Program, and to replace town vehicles and equipment that are beyond their useful life.
Pay down debt and create a pay-as-you-go system for most capital expenses.
Repair and improve township properties to avoid bigger improvement costs in the future.
Continue to be an attractive town for raising a family, starting a new business, and allowing them to prosper.
Minimize the tax burden on taxpayers as they deal with the economic fallout of the coronavirus crisis.